\chapter{Badan Layanan Umum}

% \subsection{Public Service Agency}
As explained in Chapter \ref{ch:case-study}, in 2012,  which coincides with its
50$^{th}$ (gold) anniversary, the institution will re-form the organizational
into \emph{Badan Layanan Umum} or Public Service Agency, in english. Being a BLU
unit, management of the university will have broad autonomy in implementing the
principles of effective corporate management and accountable, so that management
can develop the university to improve performance and service quality, either to
students, staffs and communities. Following are things can be done in a BLU
unit:\begin{itemize}
  \item Besides from the institution income, the source revenue of the
  institution can also be obtained from government's subsidy for the costs such
  as: the cost of the staff salaries. and the cost of investment/capital.
  \item The institution's management has flexibility in managing its finances
  and utilization of its income and are not required to deposit their income to the
  national treasury. This of course will provide positive impact to the
  institution, since the institution are given the authority to conduct
  procurement of resources needed from the institution's income. 
  \item The BLU concept also open up the possibility for cooperation with the
  third parties who are not binding.
\end{itemize}
 
The flexibility in finance management will make head of the institution have the
right to set up employee's payroll. This is the basic different from the old
rules in state-own institutions, in which all employees receive the same salary
regardless of their work's performances. With BLU, the management can provide
salaries, incentives or bonuses beyond the salary provisions. Management also
enable to improve human resources and recruiting employees in accordance with
the needs and desired competences. Placement of professionals should not be based on
rank, hierarchy and the like, but more focused on the professionalism of human
resources. Hence it can guarantee the service quality in accordance with the
goals and direction of the BLU.

However, to be a BLU unit, the institution must be able to meet various
requirements: substantive, technical and administrative. Hence it requires a
serious preparations in order to meet these requirements. The consideration is
to look at the performance of the institution as well as the financial
performance. It should be based on the principles of good governance which
consists of transparent, participative and accountable. These principles are
needed to achieve a good public management. It aims to improve the performance
of the institution as well as allowing communities to get quality services from
professionals. It is possible because the institution no longer managed
bureaucratically but governed by entrepreneurs without overlook their main
function as a public institution instead of gain profits. 

Becoming a BLU institution, as explained above, will accelerate the process
toward the institutional goals and ICT is seen as an enabler by the institution
to become a transparent, effective, efficient and accountable institution.